State of Play
It is day 14 of the federal government shutdown with no clear end in sight. The Senate will convene today to take its eighth vote on the House-passed “clean” CR, which is expected to fail again.
Congress remains deadlocked with Democrats continuing to push to extend ACA subsidies before open enrollment begins on November 1.
Driving the News
The White House signaled continued mass layoffs of federal workers during the stoppage, beyond the 4,000 already terminated. Some agencies have seen gutting cuts, including the Department of Education, Treasury, and HHS.
President Trump vowed to pay military personnel their October 15th paychecks out of unspent FY24 funding from the Defense budget, primarily out of its research, testing, and evaluation money.
The looming question is how these federal layoffs and furloughs will impact tech. More on that below.
Three Things to Watch in Tech
1. How Federal Layoffs Could Impact Tech: Sweeping federal layoffs due to the government shutdown are hitting agencies critical to the tech sector in AI, cybersecurity, intellectual property, and semiconductors.
The Department of Commerce is said to be losing about 315 employees, many of which are carrying out key technology research programs. The US Patent and Trademark Office, which falls under Commerce, issued 126 layoffs, which could significantly impact IP emerging tech filings.
The Department of Homeland Security is cutting 176 employees, largely from CISA, which has already been severely impacted by federal furloughs. These cuts could reduce CISA’s workforce by roughly 7 percent, coming at a time of heightened AI-driven cyber risks and the lapse of the Cybersecurity Information Sharing Act, which has taken away the requirement of public-private threat data sharing.
2. What’s Going on With China Tariffs: On Friday, President Trump announced 100 percent tariffs on all Chinese imports in response to Beijing’s new curbs on rare earth exports, dismissing US complaints as “double standards” and promising unspecified “corresponding measures.”
China vowed to retaliate in light of Trump’s announcement.
Trump’s move, paired with planned export restrictions on “critical software,” reflects US alarm over China’s dominance of rare earth supply chains crucial to EVs, medical devices, and defense systems. This action jeopardized a planned meeting with Xi, as markets slid.
The renewed tit-for-tat risks higher holiday-season inflation, further strains already fragile trade talks, and signals a shift from a tenuous truce to “mutually assured disruption” in US–China economic relations.
3. Kids’ Online Safety Bills Gain Momentum: The House Energy and Commerce Committee is expected to be assembling a multi-bill kids’ online safety package, including a revised version of the Kids Online Safety Act (KOSA).
Chair Brett Guthrie (R-KY) has signaled he is preparing a hearing and markup once the shutdown ends.
Beyond KOSA, the bundle could include age checks on smartphones for sensitive content, extensions of kids’ privacy rules to some teens, and potential chatbot measures. These measures are expected to receive significant pushback from industry.
House Republicans are said to be reworking KOSA’s “duty of care” provision in order to garner more support, after negotiations failed last time over free speech concerns.
🏛️ Tech Hearings
No relevant hearings.
🗓️ Upcoming Events
The Federalist Society for Law and Public Policy Studies - AI and National Security Symposium - Tuesday, October 14 at 9:30 AM EST
The Fintech Foundation - DC Fintech Week 2025 - Wednesday October 15 to Thursday, October 16
Broadband Breakfast - Virtual Discussion on "Libraries, Schools, and Telehealth: How Anchor Institutions Bridge Gaps" - Wednesday, October 15 at 12:00 PM EST
The Potomac Officers Club - 2025 GovCon International and Global Defense Summit - Thursday, September 16 at 8:00 AM EST
The Institute for Critical Infrastructure Technology - Virtual Briefing on "Securing America's Infrastructure From Foreign-Controlled Sensor Technology” - Thursday, September 16 at 2:00 PM EST
The Center for Strategic and International Studies - Virtual Book Discussion on "The Big Steal: Ideology, Interest, and the Undoing of Intellectual Property" - Friday, October 17 at 2:00 PM EST
